BajaNomad - MINING COMING TO LORETO

MINING COMING TO LORETO

Marla Daily - 2-7-2013 at 06:28 AM

http://www.proactiveinvestors.com.au/companies/news/39227/az...

Azure Minerals, an Australian company, has paid the Mexican Government $137,000 for mining rights to 9571 hectares of land at Loreto. Mapping and sampling begin this month. They're after copper.

Pescador - 2-7-2013 at 08:29 AM

The Boleo Project at Santa Rosalia has certainly had a very mixed effect. The economy is doing much better and we see a great increase in the number and quality of grocery stores, general stores, building materials and hardware, restaurants, restaurants, hotels and motels. We have also had an influx of outside labor which carries increased opportunity but also a great increase of crime. People are driving nicer cars, but the influx in cars is almost mind boggling and it has become impossible to find a parking space during the day in Santa Rosalia. The lines at the banks have become longer than seen in most Post Offices in the United States and the waits are perhaps a little longer.

A lot of people have learned new skills and occupations that they will be able to carry with them wherever they go and we see a general relief from the crushing poverty which is inherit in this area where there was very little opportunity.

The city and municipality offices are doing better and we see a real difference in monies for infastructure. The government offices have come to learn that they have other money available which may give some small relief to always looking at Punta Chivato and what they believe to be the rich americans who live there, to find extra funding.

Housing has exploded and every little house that was not being used full time is under rent and the building of new houses is way up.

Marla Daily - 2-7-2013 at 12:03 PM

Does anyone know the location of these hectares cleared for mining?

Paula - 2-7-2013 at 12:10 PM

Hi Marla, lousy news, isn't it? I've heard that the hectares are just north of town, on both sides of the highway, not sure if that is accurate.

Mining? Tourism? We can have it all?? Yikes!

typo corrected...

[Edited on 2-7-2013 by Paula]

vandenberg - 2-7-2013 at 12:36 PM

Folks, we're only talking about 37 sq miles.

Marla Daily - 2-7-2013 at 01:20 PM

37 square miles is an area 1/3 times larger than Manhattan and over half the size of Washington, D.C.

BajaBlanca - 2-7-2013 at 02:05 PM

wow, that will certainly bring many changes to the Loreto area.

I agree with the banking chaos in Santa Rosalia now - we were there 2 days ago and I have never seen so many people waiting in line at any bank ever.

BajaNomad - 2-7-2013 at 04:08 PM

Quote:

Originally posted by Marla Daily
Does anyone know the location of these hectares cleared for mining?

From:
http://www.infomine.com/index/pr/pb280596.pdf

[Edited on 2-7-2013 by BajaNomad]

loreto-copper-project-map.jpg - 50kB

Thank you Doug!

David K - 2-7-2013 at 04:36 PM

I went to the Australian company's web page, and found this which I think is very interesting:

Why Mexico?

MEXICO

Low sovereign risk (ranked #4 in the world of countries for favourable mining investment).
Political and financial stability with North American-style legal and accounting systems.
Low taxation rates and no mining royalties.
Foreign companies, foreign ownership, and repatriation of capital allowed.
500 years of mining history – strong government, bureaucracy and public support for mining.
Strategic geographical location in world class mining region.
Well trained and experienced workforce readily available.
Overview
Mexico is a mining-friendly country with stable political and financial systems, a long mining history, rational environmental policies, excellent infrastructure, and a firm government and bureaucratic commitment to the development of natural resources. It offers the exploration and mining industry a favourable investment and operating climate in a country enriched in mineral resources.

Prospectivity
World-class mining districts and mines are present throughout Mexico. The country is a major producer of silver, gold, copper, lead, zinc and molybdenum. Numerous new mining operations have recently commenced or are currently in development, and the country has recently become a focus for exploration and mining companies of all sizes.

Azure Minerals' projects are located within the State of Sonora in the world famous Sierra Madre Occidental province of northwestern Mexico. This historic trend has produced approximately 40 million ounces of gold and 2,000 million (2Boz) ounces of silver over the past 400 years, and has become an area of global focus in the search for new precious metal deposits.

Mexico is the world's premier silver exploration and mining country for several reasons. It is historically and presently the world's number one silver producer with an historic production of over 10 billion ounces of silver and current annual production in excess of 100 million ounces a year. Most deposits are high grade and amenable to low-cost underground and open pit mining. Significant production of silver also occurs as a by-product of gold, and copper, lead and zinc mining activities.

Sovereign Risk
Numerous country-risk surveys place Mexico near the top of the “Most Favoured” list when assessing and comparing the suitability and risk of investment. For example, Mexico has been ranked equal 4th (2006) and 5th (2005) in the most recent assessments carried out by Behre Dolbear & Company Inc, out of 25 countries which host major exploration and mining operations.

Mexico has a 500-year mining history, with mining forming an integral part of the national and local economies. Culturally, Mexicans look very favourably on mining at all levels. There is strong government support for exploration and mining activities, and this is enhanced by the various bureaucratic departments and organisations charged with administering and assisting the industry.

Politically, Mexico is a democratic republic providing the most stable political environment in Latin America. The government has implemented favourable, straightforward mining legislation for the express purpose of attracting foreign mining investment. This was accompanied by privatisation of all Mexican governmental mining holdings and an active retreat from competition with the private sector in mining exploration and development. Mexico has demonstrated a strong commitment to increasing transparency in all aspects of government, and the deregulation of the mining industry is arguably the most successful of these.

Mexico has strong environmental laws and regulations, and a commitment to uphold them. Mining companies that follow Mexican laws and internationally accepted environmental practices can expect their development projects to advance without undue interference or delay.

Mexico has been a party to the North American Free Trade Agreement (NAFTA) since 1994 and thus has a tax and trade regime comparable to the USA and Canada. It operates under western-style legal and accounting systems, with a contemporary taxation system and no mining royalties.

The Mexican mining community is well trained and educated, both for professional and technical personnel, and at the skilled labour level. Specialised and standard mining equipment and services are readily available with good technical support. The Mexican Geological Survey has excellent geological databases and other technical resources readily available at little or no cost.

Mining Law
Mineral exploration and mining in Mexico are regulated by the Mining Law of 1992 (as amended in 2005), which establishes that all minerals found in Mexican territory are owned by the Mexican nation, and that private parties may exploit such minerals (except oil and nuclear fuel minerals) through mining licenses, or concessions, granted by the Federal Government.

A Mining Concession gives the holder both exploration and exploitation rights subject to the payment of relevant taxes. Mining Concessions have a term of 50 years from the date the exploration concession was registered. Concessions may be granted to (or acquired by, since they are freely transferable) Mexican individuals, local communities with collective ownership of the land known as “ejidos”, and companies incorporated in Mexico pursuant to Mexican law.

There are no restrictions on foreign ownership of Mexican companies. Foreigners wishing to engage in mining in Mexico must establish a Mexican corporation for that purpose, or enter into joint ventures with Mexican individuals or corporations. To this end, Azure Minerals has incorporated a 100% owned Mexican subsidiary company called Minera Piedra Azul SA de CV.

bajario - 2-8-2013 at 05:16 AM

All that land for less than $150k and 1%? Man another deal I missed out on.

mtgoat666 - 2-8-2013 at 07:26 AM

Quote:

Originally posted by bajario
All that land for less than $150k and 1%? Man another deal I missed out on.

From my read,... All they did was obtain mineral rights and propose exploration. Why are y'all talking about mining before they have even done exploration? :?:

ElCap - 2-8-2013 at 08:42 AM

Quote:

From my read,... All they did was obtain mineral rights and propose exploration. Why are y'all talking about mining before they have even done exploration? :?:

I agree, it will be a long time, if ever, that there will be a mining operation there. The fact that the Boleo Mine in Santa Rosalia is now $350M overrun, and operating on a month-by-month continuation basis, doesn´t bode well for another whole exploration and development just down the road a couple of hundred miles.

That being said, looking into the distant future one might see that the central Baja economy could be dominated by mining operations, whereas the tip is dominated by tourism. My preference would be for it to stay like it is, but that's unlikely

Marla Daily - 2-8-2013 at 07:13 PM

According to the map, this is ejido land. The mining-lease area on the eastern block of the map includes land behind the beach lots sold along the road to El Bajo, not far from Picazon and to the south
towards Loreto.

David K - 2-8-2013 at 07:15 PM

I hope the San Bruno hilltop fort/ mission ruins are not destroyed... Thank goodness Ed Vernon has photographed it... if it is on a hill that needs to be mined.

Hard to tell from that map if it includes San Bruno?

Marla Daily - 2-8-2013 at 08:15 PM

San Bruno is pretty far north from the land to be mined.

David K - 2-9-2013 at 12:57 PM

Thanks... the San Bruno siteI am speaking of is about 20-30 km. north (12-18 miles)... the map looked like it could have been that far, but was hard to be sure.

wilderone - 2-10-2013 at 09:44 AM

"Boleo Project at Santa Rosalia has certainly had a very mixed effect. The economy is doing much better and we see a great increase in the number and quality of grocery stores, general stores, building materials and hardware, restaurants, restaurants, hotels and motels"

The mining area looks like a bomb hit it. Just hills of dirt, trash everywhere. There is nothing resembling "Baja California". Large machinery, roads to accommodate them, trash, leveled hilltops, trash, blowing sand, not a scintilla of vegetation left, total destruction. Canadian miners are an incidious lot bent on exploitation. And there is no remediation - changed forever. And to what end?

Barry A. - 2-10-2013 at 10:01 AM

Quote:

Originally posted by wilderone
"Boleo Project at Santa Rosalia has certainly had a very mixed effect. The economy is doing much better and we see a great increase in the number and quality of grocery stores, general stores, building materials and hardware, restaurants, restaurants, hotels and motels"

The mining area looks like a bomb hit it. Just hills of dirt, trash everywhere. There is nothing resembling "Baja California". Large machinery, roads to accommodate them, trash, leveled hilltops, trash, blowing sand, not a scintilla of vegetation left, total destruction. Canadian miners are an incidious lot bent on exploitation. And there is no remediation - changed forever. And to what end?

-----and to what end???? The World of Man needs copper, and people in Mid-Baja need good jobs.

The "Trash" is a "people problem" and only indirectly a Mining Company problem assuming it is domestic trash you are talking about. Mining operational "trash" is a different matter and it can be obtrusive, and should be mitigated if possible.

I personally find the Santa Rosalia area fascinating from a Cultural Geography perspective, and it does not offend me---quite the contrary.

Barry

DianaT - 2-10-2013 at 10:23 AM

Quote:

Originally posted by Barry A.

Quote:

It is always a balancing act between bringing good jobs and prosperity to an area while providing useful materials for human consumption and protecting the environment. From what wilderone is describing, it appears that there should be at least more regulation and less destruction. Even then, there will still be permanent environmental damage ---- but perhaps a very improved economy for the local people.

It is unfortunate that too many corporations don't care about what they do to another country and their environment as long as they are making money. Sounds like the scales are being tipped too far in one direction.

Santa Rosalia is a wonderful place. But maybe if they start making more money, and the municipality makes more money, they will share more with the smaller towns. It is amazing how long some of the local municipal workers and SAPA employees go without being paid.

[Edited on 2-10-2013 by DianaT]

Barry A. - 2-10-2013 at 10:47 AM

Diana--------I basically agree with you, but if the Mining Company can't make a decent profit they will shut down, and may even pull out. Everything is a tradeoff, and normally Corporations will do whatever is viable and feasible under the unique circumstances they find themselves in--------but they seldom want to shoot themselves in the foot generally speaking.

I guess I have more faith in "Corporations" doing the "right thing" than most, but yes they normally do look out for themselves first-------?!?!?!?

"Environmental damage" is a relative and often vague subject, IMO. Like Pres. Obama always says, we want a "balanced approach." :yes:

Barry

David K - 2-10-2013 at 10:58 AM

The mines in Baja from the last two centuries are some of the most interesting attractions. Last summer we visited Real de Santa Ana and Pozo Aleman. I am sure they looked like a dump and scar when they were working. Today's mines have regulations that didn't exist in the past.

DianaT - 2-10-2013 at 11:44 AM

Quote:

Originally posted by Barry A.
Diana--------I basically agree with you, but if the Mining Company can't make a decent profit they will shut down, and may even pull out. Everything is a tradeoff, and normally Corporations will do whatever is viable and feasible under the unique circumstances they find themselves in--------but they seldom want to shoot themselves in the foot generally speaking.

I guess I have more faith in "Corporations" doing the "right thing" than most, but yes they normally do look out for themselves first-------?!?!?!?

"Environmental damage" is a relative and often vague subject, IMO. Like Pres. Obama always says, we want a "balanced approach." :yes:

Barry

Ah yes, your faith is definitely different than mine. Unfortunately the history of corporations, especially mining corporations, working in other countries is not good. They tend to exploit rather than develop. Yes, they have a bottom line to meet, but at what expense? And Obama is correct. :yes:

As a separate off topic aside--- did you know that the LADWP is the 13th most hated company in the country?

Barry A. - 2-10-2013 at 12:17 PM

Quote:

Originally posted by DianaT

Quote:

Barry

As a separate off topic aside--- did you know that the LADWP is the 13th most hated company in the country?

DWP (LA Dept. of water and power) wow, no I didn't!!! but I guess it does not surprise me. DWP understandably (thirst for water and survival) have been ripping off the Eastern Sierra (Owens Valley N. to Mono Lake) for many years with a strangle-hold on water-rights & water aqua-ducted to LA. I must admit that as a consequence the Eastern Sierra has pretty much remained sorta pristine as few can develop anything without sufficient water-----a positive consequence from an environmental point of view and for we nature-lovers, but hard on the locals.

For people to "hate" DWP is silly to me-------DWP is just doing what they were chartered to do---provide water for LA, which back then when they came to Owens Valley was critical for their survival and growth. Now, most water for LA comes from elsewhere, but LA does not want to lose their ace-in-the-hole water from wherever they can get it. I can't blame them for that.

Thanks for the info.

Barry

Skeet/Loreto - 2-11-2013 at 01:15 PM

Diana. did you know that they had a small ShootingWar in 1931 over the Water Rights from the Owens Valley.
I lived and worked in Bishop and surrounding area for 4 years and really enjoyed that there were not too many people fishing the Owens River. It is still Isolated compared to many places.

skeet/Loreto

DianaT - 2-11-2013 at 02:37 PM

Quote:

Originally posted by Skeet/Loreto
Diana. did you know that they had a small ShootingWar in 1931 over the Water Rights from the Owens Valley.
I lived and worked in Bishop and surrounding area for 4 years and really enjoyed that there were not too many people fishing the Owens River. It is still Isolated compared to many places.

skeet/Loreto

Yes Skeet, I did know that, and we are now enjoying living here a lot. While so far no shooting, the water battle goes on and on. Lots of great fishing areas.